Rockwell Automation provides industrial automation power, control, and information solutions. The company operates through two segments, Architecture & Software and Control Products & Solutions. The company was founded in 1903 and is based in Milwaukee, Wisconsin.
ROK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Rockwell Automation Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Rockwell Automation Inc ranked in the 31th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Rockwell Automation Inc ended up being:
As a business, ROK is generating more cash flow than 87.12% of positive cash flow stocks in the Industrials.
The business' balance sheet reveals debt to be 13% of the company's capital (with equity being the remaining amount). Approximately only 23.53% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ROK's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 44.58% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ROK, try LHX, ROP, ENS, TRNS, and TXT.